GameStop has made a bold attempt to acquire eBay in a deal valued at approximately $56 billion, marking one of the most unusual takeover efforts in recent corporate history.
The video game retailer proposed a cash-and-stock offer of $125 per share, representing about a 20% premium over eBay’s recent closing price. The bid, led by GameStop CEO Ryan Cohen, was unsolicited and immediately raised the possibility of a hostile takeover if eBay’s board rejects the proposal.
Cohen indicated he was prepared to take the offer directly to shareholders through a proxy fight, underscoring the seriousness of the bid. GameStop had already accumulated a roughly 5% stake in eBay through shares and derivatives prior to the announcement.
The proposed acquisition is notable due to the size disparity between the two companies. eBay’s market valuation has been nearly four times that of GameStop, making the offer highly ambitious and atypical in the mergers and acquisitions landscape.
GameStop’s leadership argued that combining the two companies could unlock significant value. Plans outlined in the proposal included cutting approximately $2 billion in annual costs within the first year after a deal closes, while leveraging GameStop’s 1,600 U.S. retail locations to support eBay’s operations. Those stores could serve as hubs for product authentication, fulfillment, and live commerce.
Cohen also positioned the potential combined company as a stronger competitor to major e-commerce players, suggesting the deal could significantly expand both firms’ reach and profitability.
To finance the acquisition, GameStop said it had secured a commitment for about $20 billion in debt financing, along with plans to use its existing cash reserves and seek additional investment from third-party sources. As of early this year, the company reported roughly $9.4 billion in cash and liquid assets.
Despite the aggressive push, eBay had not publicly responded to the offer as of the latest reports.
The move represents the latest chapter in GameStop’s ongoing transformation efforts under Cohen, who has sought to reposition the company amid declining traditional retail sales and a broader shift toward digital gaming. Meanwhile, eBay has shown more stable performance, recently projecting stronger-than-expected revenue driven by demand in key categories.
Source: Reuters